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1.
The association between audit committees,compensation incentives,and corporate audit fees 总被引:4,自引:3,他引:1
This study uses audit fee data from the 2001–2003 reporting periods to examine the relationship between measures of audit
committee effectiveness and compensation incentives with corporate audit fees. Our results suggest that audit committee size,
committee member expertise, and committee member independence are positively associated to audit fee levels, consistent with
the notion that audit committees serve as a complement to external auditors in monitoring management. In contrast, CEO long-term
pay and insider ownership are inversely related to audit fee levels, substituting for external audit effort in motivating
management. Notwithstanding results on the full sample of firm-years, we uncover significant differences in the determinants
of audit fees between the years examined. An important implication of these results is that explaining the intra-firm variation
in audit fees over time is clearly necessary in order to understand the antecedents and consequences of audit fees.
相似文献
James F. Waegelein (Corresponding author)Email: |
2.
Mine Ertugrul Özcan Sezer C. F. Sirmans 《The Journal of Real Estate Finance and Economics》2008,36(1):53-80
This paper studies the determinants of corporate hedging practices in the REIT industry between 1999 and 2001. We find a positive
significant relation between hedging and financial leverage, indicating the financial distress costs motive for using derivatives
in the REIT industry. Using estimates of the Black–Scholes sensitivity of CEO’s stock option portfolios to stock return volatility
and the sensitivity of CEO’s stock and stock option portfolios to stock price, we find evidence to support managerial risk
aversion motive for corporate hedging in the REIT industry. Our results indicate that CEO’s cash compensation and the CEO’s
wealth sensitivity to stock return volatility are significant determinants of derivative use in REITs. We also document a
significant positive relation between institutional ownership and hedging activity. Further, we find that probability of hedging
is related to economies of scale in hedging costs.
相似文献
C. F. SirmansEmail: |
3.
By using an extension of the Fama and MacBeth cross-sectional regression model, this analysis examines the relationship between
stock returns and (i) a local beta, (ii) two global betas, and (iii) some firm-specific characteristics in the Chinese A-share
market. The results of the analysis suggest that neither the conditional local beta nor the global betas has a significant
relationship with stock returns in A-shares. Our findings indicate that firm factors, such as the book-to-market ratio and
firm size, are important in explaining stock returns. However, the size effect is sensitive to the specification of the model.
Finally, the results of sub-period tests indicate that the A-share market did not become increasingly integrated with either
the world stock markets or the Hong Kong stock market over the period 1995–2002.
相似文献
Yuenan WangEmail: |
4.
Rong-Ruey Duh Wen-Chih Lee Chi-Yun Hua 《Review of Quantitative Finance and Accounting》2009,32(1):33-59
This paper examines whether non-audit service provision impairs auditor independence, and whether the degree of auditor independence
in Taiwan changed in the wake of the 2004 Procomp scandal. The auditors involved in the Procomp affair were suspended from
practice for 2 years and were sued, and we posit that these unprecedented sanctions and litigation affected subsequent auditor
behavior. Considering the measurement errors involved in discretionary accruals, we propose an alternative analytic approach
in which the dependent variable in the regression analysis is the difference between audited earnings and forecast earnings,
scaled by total assets, and the primary independent variable is the non-audit fees ratio. After controlling for the effects
of financial leverage, operating and market performance, industry, company size, audit firm size, management forecast error,
and management attempts to manipulate earnings, regression analysis indicates that the coefficient for non-audit fees ratio
is negative and significant in 2003 but not in 2004. Using non-audit fees instead of non-audit fees ratio to conduct the regression
analysis yields similar results. This finding is consistent with the notion that auditors make a trade-off between gaining
service fees and avoiding litigation and reputation loss. Limitations and policy implications are also offered.
相似文献
Chi-Yun HuaEmail: |
5.
We examine stock sales as a managerial incentive to help explain the discontinuity around the analyst forecast benchmark. We find that the likelihood of just meeting versus just missing the analyst forecast is strongly associated with subsequent managerial stock sales. Moreover, we provide evidence that managers manage earnings prior to just meeting the threshold and selling their shares. Finally, the relation between just meeting and subsequently selling shares does not hold for non-manager insiders, who arguably cannot affect the earnings outcome, and is weaker in the presence of an independent board, suggesting that good corporate governance mitigates this strategic behavior.
相似文献
Vicki Wei TangEmail: |
6.
This study investigates the influence of managerial incentives on the resolution of financial distress. Our model predicts
that when creditors and equityholders prefer different resolution methods, the likelihood of choosing Chapter 11 over private
renegotiation is related to the ownership structure of the distressed firm. Empirical test results using a sample of 81 voluntary
Chapter 11 firms and 65 private workout firms support the model’s prediction. We show that managerial ownership is positively
related to the incidence of Chapter 11 filing when there is conflict between equityholders and creditors over the choice between
Chapter 11 and a private renegotiation. Consistent with prior literature, we also find that the choice of resolution methods
depends on the extent of creditor holdout problems and the level of economic distress. We also performed the analysis of a
subsequent 5 years of post-distress performance for all sample firms. The majorities of firms that file for Chapter 11 lose
their independence and are either acquired or liquidated. However, more than half of firms in private workouts survived as
independent firms.
相似文献
Chuck C. Y. Kwok (Corresponding author)Email: |
7.
Zhilan Feng Chinmoy Ghosh C. F. Sirmans 《The Journal of Real Estate Finance and Economics》2007,35(3):225-251
We analyze director compensation for Real Estate Investment Trusts (REITs) and investigate the relations between director
compensation and other measures of the board independence and board monitoring. Using 136 REITs in 2001, we find that REITs
that pay higher equity-based compensation to their board members are associated with higher financial performance. Our data
indicate that board equity-based compensation is positively related to the existence of an independent nomination committee,
however, it has no significant relationship with board size, proportion of outside directors, CEO duality and CEO tenure and
ownership.
相似文献
Zhilan FengEmail: |
8.
C. Charles Okeahalam 《Journal of Financial Services Research》2008,33(3):147-162
I assess the impact of bancassurance on the price of retail financial services. I find that service fees in a product bundle
increase less than proportionally to the number of services; that an increase in the number of clients in each product bundle
market reduces fees by 1.5%; that the degree of competition in the markets of each bundle also reduces fees; that premium
products have higher average costs; and finally, that cross-holdings reduce prices by about 5% and bancassurance reduces prices
by just over 6%. The price reduction declines if both strategies are combined.
相似文献
C. Charles OkeahalamEmail: |
9.
Chaur-Shiuh Young Liu-Ching Tsai Hui-Wen Hsu 《Review of Quantitative Finance and Accounting》2008,30(3):297-314
This study examines the relation between controlling shareholders’ excess board seats control and financial restatements.
An analysis of a sample comprising 106 Taiwanese listed firms (53 restating firms vs. 53 non-restating control firms) shows
that financial restatements are more likely to occur when there is a greater divergence between controlling shareholders’
board seats control rights and ownership rights. We also find that the excess board seats control of controlling shareholders
is positively associated with the materiality and pervasiveness of financial restatements. Overall, these results suggest
that the entrenchment incentive from controlling shareholders’ excess control motivates firms to adopt aggressive accounting
policies.
相似文献
Hui-Wen HsuEmail: |
10.
We investigate if the SEC’s recently mandated disclosure of fees for audit and nonaudit services paid by firms to their incumbent auditors affected the market’s perception of auditor independence and earnings quality. Following the initial fee disclosures in 2001, we find that the market valuation of quarterly earnings surprises (earnings response coefficient) was significantly lower for firms with high levels of nonaudit fees than for firms with low levels of such fees. In contrast, in the year prior to the new fee disclosures, there was no reduction in earnings response coefficients for firms that subsequently reported high nonaudit fees. Our evidence suggests that mandated fee disclosures provided new information that was viewed by the market as relevant to appraising auditor independence and earnings quality.
相似文献
Bin KeEmail: |
11.
Traditional executive stock options are often criticized for inherently weak links between pay and performance. Hurdle rate
executive stock options represent a viable improvement. However, valuing these options presents extraordinary analytic difficulties.
With a constant dividend yield the strike price becomes a path-dependent function of the stock price and exact analytic valuation
is intractable. To solve this problem, we apply the Monte Carlo valuation approach developed by Longstaff and Schwartz (Rev
Financ Stud 4:113–147, 2001) to estimate the value of path-dependent American options. We also extend the methodology to incorporate
the theoretical framework by Ingersoll (J Bus 79:453–487, 2006) to permit subjective valuation influenced by an executive’s
risk aversion.
相似文献
Charles Corrado (Corresponding author)Email: |
12.
We examine the causal relation between corporate social responsibility (CSR) and financial performance. Consistent with past
studies, we find that the two variables appear to be related when we use traditional statistical techniques. However, using
a time series fixed effects approach, we find that the relation between CSR and financial performance is much weaker than
previously thought. We also find little evidence of causality between financial performance and narrower measures of social
performance that focus on stakeholder management. Our results suggest that strong stock market performance leads to greater
firm investment in aspects of CSR devoted to employee relations, but that CSR activities do not affect financial performance.
We conclude that CSR is driven more by unobservable firm characteristics than by financial performance.
相似文献
Edward NellingEmail: |
13.
Hong Zou Chuanhou Yang Mulong Wang Minglai Zhu 《Review of Quantitative Finance and Accounting》2009,33(2):113-139
This article examines the effect of organizational forms on corporate dividend decisions by exploring the differences in dividend
payout ratios between mutual and stock property–liability (P–L) insurers in the US. Our large sample evidence suggests: (1)
mutual insurers tend to have a lower dividend payout ratio than stock insurers and the observed difference is about 4% points,
holding other factors constant; (2) mutual insurers tend to adjust dividend payout ratios toward their long-run target levels
more slowly than stock firms. These results are consistent with the capital constraints and/or greater agency costs of equity
in mutual insurers.
相似文献
Minglai ZhuEmail: |
14.
Dong Wook Lee 《Journal of Financial Services Research》2009,35(3):273-296
This paper examines the participation decisions of employees in a stock option exchange program aimed at restoring value to
underwater options. The program invites employees to exchange their existing underwater options for new options, the value
of which is determined by the company stock price in 6 months and 1 day. The participation turns out to vary cross-sectionally
and, perhaps surprisingly, the employees do not surrender all their underwater options. We find that employees actively and
rationally consider a variety of factors to make their participation decisions, rather than blindly surrendering their underwater
options. The participation decisions of non-executive employees seem to be well anticipated by stock market investors, since
no abnormal stock returns are related to the participation decisions.
相似文献
Dong Wook LeeEmail: |
15.
Lawrence D. Brown Marcus L. Caylor 《Review of Quantitative Finance and Accounting》2009,32(2):129-144
Using a unique dataset provided by Institutional Shareholder Services (ISS), we relate 51 governance provisions to firm operating
performance as proxied by return on assets and return on equity. We identify six corporate governance provisions that are
significantly and positively linked to return on assets, return on equity or both using at least two of our six regressions.
We examine nine governance provisions that have been recently mandated by the three major U.S. stock exchanges, and we find
none of them to be significantly and positively related to firm operating performance. Our results reveal that the governance
provisions recently mandated by the U.S. stock exchanges are less closely linked to firm operating performance than are those
not so mandated.
相似文献
Marcus L. CaylorEmail: |
16.
Corporate cash holdings: Evidence from Switzerland 总被引:1,自引:0,他引:1
Wolfgang Drobetz Matthias C. Grüninger 《Financial Markets and Portfolio Management》2007,21(3):293-324
This paper investigates the determinants of cash holdings for a comprehensive sample of Swiss non-financial firms between
1995 and 2004. The median Swiss firm holds almost twice as much cash and cash equivalents as the median US or UK firm. Our
results indicate that asset tangibility and firm size are both negatively related to corporate cash holdings, and that there
is a non-linear relationship between the leverage ratio and liquidity. Dividend payments and operating cash flows are positively
related to cash reserves, but we cannot detect a significant relationship between growth opportunities and cash holdings.
Most of these empirical findings, but not all of them, can be explained by the transaction costs motive and/or the precautionary
motive. Analyzing the corporate governance structures of Swiss firms, we document a non-linear relationship between managerial
ownership and cash holdings, indicating an incentive alignment effect and an opposing effect related to increasing risk aversion.
Finally, our results suggest that firms in which the CEO simultaneously serves as the COB hold significantly more cash.
相似文献
Matthias C. GrüningerEmail: |
17.
Economic consequences of financial reporting changes: diluted EPS and contingent convertible securities 总被引:1,自引:0,他引:1
This paper examines the economic consequences of changes in the financial reporting requirements for contingent convertible
securities (COCOs). Using a sample of 199 COCO issuers from 2000 to 2004, we find that issuers are more likely to restructure
or redeem existing COCOs to obtain more favorable accounting treatment when the financial reporting impact on diluted earnings
per share (EPS) is greater and when EPS is used as a performance metric in CEO bonus contracts. These results provide new
evidence that managers are willing to incur costs to retain perceived financial reporting and compensation benefits. We also
present evidence of significantly negative stock returns around event dates associated with the financial reporting changes,
consistent with investor anticipation of the agency costs associated with the rule change.
相似文献
Christine I. WiedmanEmail: |
18.
Henryk Gurgul Paweł Majdosz Roland Mestel 《Financial Markets and Portfolio Management》2007,21(3):353-379
This study provides empirical evidence of the joint dynamics between stock returns and trading volume using stock data of
DAX companies. Contemporaneous as well as dynamic interactions are investigated for a period from January 1994 to December
2005 on a daily basis. Our results suggest that there is almost no relationship between stock return levels and trading volume
in either direction. We find that trading volume is contemporaneously positively related to return volatility. In addition,
we establish that lagged return volatility induces trading volume movements. Finally, we examine dependencies in the tails
and find no significant support for the hypothesis of the independence of the maximal values of absolute returns and trading
volume.
相似文献
Roland Mestel (Corresponding author)Email: |
19.
This study investigates whether the association between ownership structure and leverage varies with the magnitude of growth
opportunities. According to the free cash flow hypothesis, managers receive utility from increasing firm size and the over-investment
problem is more severe for firms with fewer growth opportunities. Considering the disciplinary role of leverage on the over-investment
problem and ownership structure as a control mechanism to affect financing decisions, we hypothesize that the association
between ownership structure and leverage is stronger for firms with fewer growth opportunities. We find that the association
between equity ownership and leverage is significant for low-growth firms, but not for high-growth firms. The results mostly
hold when sample firms are partitioned into large and small firms to directly control for the effect of firm size on the association
between ownership structure and leverage.
相似文献
Kishore TandonEmail: |
20.
This study examines empirically the extent to which the frequency of interim financial reporting affects stock price volatility
over the course of the fiscal year in four countries with different interim reporting regimes: the United States and Canada
with quarterly reporting, and Great Britain and Australia with semi-annual interim reporting. It is hypothesized that, in
the tradeoff between timeliness and predictive value of the interim reports, semi-annual interim reporting will lead to lesser
price volatility after accounting for other potential influences. These expectations are supported in the results found. Moreover,
additional tests conducted on American ADRs of British and Australian companies show that those firms have higher volatility
than comparable purely domestic firms on their home stock exchanges.
相似文献
Robert H. WernerEmail: |